Founder of Terraform Labs, Do Kwon, Could Face Imprisonment in South Korea and the US, Warns Prosecutor

The co-founder of Terraform Labs, Do Kwon, is facing potential jail terms in both South Korea and the US, according to a senior prosecutor. Dan Sunghan, who is leading the investigation in South Korea, stated that Kwon may face multiple sentences for his role in the collapse of the Terra ecosystem. Kwon was arrested by Montenegro authorities in March 2023 while trying to leave the country using fake documents, and both South Korea and the US are requesting his extradition.

Speaking to Bloomberg, Sunghan stated that South Korea has carried out most of the foundational investigation into the implosion and has access to more evidence than the US. He also revealed that some of Kwon’s co-conspirators have already been identified by South Korean authorities, indicating that a trial in the country would be the most efficient approach to getting justice. Sunghan suggested that Kwon could face different charges and jail sentences in two separate countries, with South Korea trying him first for fraud charges and subsequently extraditing him to the US for another trial.

Sunghan also addressed the recent funds transfer from Kwon’s cold wallet. The prosecutor stated that the wallet’s location and means of transfer are still unknown but that South Korean authorities are investigating the withdrawals.

Kwon and the chief financial officer of Terraform Labs, Han Chang-Joon, are currently under house arrest in Montenegro following their bail grant by a Montenegro court on June 5.